Viacom Sells Philadelphia TV Station to Fox for $200 Million

Strategic Insights -

Viacom Inc.'s recent decision to sell its Philadelphia TV station, WTXF, to Fox Television Stations Inc. marks a significant move in the television industry. The sale, valued at $200 million, accompanies the potential designation of the station as a secondary affiliate of the United-Paramount television network. This network, set to launch in January, will offer four hours of programming per week, making WTXF a key player in the nation's fourth-largest television market. The deal further consolidates Fox's portfolio, which includes eight stations, while Viacom focuses on reducing its $10 billion debt.

Key Takeaways:

  • Viacom has agreed to sell its TV station WTXF in Philadelphia to Fox Television Stations Inc. for $200 million.
  • The station will continue to be an affiliate of the Fox Television network, but may also be designated as a secondary affiliate of the United-Paramount network.
  • The purchase provides Fox with its own station in the nation's fourth-biggest television market, making WTXF a key player in the market.
  • Viacom is selling nonstrategic assets to reduce its debt, having previously announced deals to sell stations in San Antonio and Raleigh-Durham, N.C.
  • Fox has agreed to sell its stations in Dallas and Atlanta, while acquiring a station in Memphis.
  • Viacom's acquisition of Paramount Communications Inc. earlier this year has been part of its effort to reduce debt and realign its assets.

Statistics:

  • The sale of WTXF to Fox is valued at $200 million.
  • Viacom's debt stands at $10 billion.
  • The United-Paramount network is set to launch in January with four hours of programming per week.
  • Fox owns eight television stations, but is shuffling its portfolio through the sale of its stations in Dallas and Atlanta.
  • Phoenix-based Chris-Craft Industries is planning to start a new network with a minority stake in Viacom's United-Paramount venture.

Sources:

  • "Viacom Sells Philadelphia TV Station to Fox for $200 Million" (Unknown publication date)
  • Viacom's recent press release announcing the sale of Paramount Communications Inc. (June 1999)
  • Various online news articles detailing Viacom's debt reduction efforts and station sales (no specific dates)